You are here: Home » Companies » News
Business Standard

Nippon Express buys 22% stake in Future Group's logistics arm for Rs 700 cr

The two companies will jointly start the business collaboration from next January

Topics
Nippon

Press Trust of India  |  Mumbai 

stake sale

Japanese logistics major Express on Wednesday acquired 22 percent stake in Future group company Future Supply-chain Solutions for over Rs 700 crore.

The plan to jointly explore growth opportunities with this deal, Mayur Toshniwal, managing director at Future Supply-chain Solutions told reporters.

The Rs 700-crore equity investment include both primary as well as secondary investment, he said, adding the deal has received all requisite approvals, including from the fair trade watchdog.

As part of this transaction, FSC has issued 37,89,350 shares to Express at Rs 664 a share, which is a full 22 percent premium to the current market price.

Through this primary issue, will hold 8.6 percent stake on a fully diluted basis and FSC will raise around Rs 252 crore for funding its near-term growth plans.

The two will jointly start the business collaboration from next January.

Nippon Express chief managing officer Satoshi Horikiri said, "this partnership will form an important part of our long-term vision of becoming a logistics company with a strong presence globally.

"We want to increase our sales outside Japan threefold to USD 12 billion by 2028 from USD 4 billion now," he added.

The domestic logistics industry is around USD 180 billion and is growing rapidly.

"We have a vision of becoming Rs 10,000-crore company over the next five to seven years by focusing on consumption- driven sectors offering customised solutions such as warehousing, transportation and distribution," Toshniwal said, adding current revenue is around Rs 1,500 crore.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, December 11 2019. 17:05 IST
RECOMMENDED FOR YOU
.